Israeli tech flotations seen reviving in 2025

US software company ServiceTitan (Nasdaq: TTAN) went public on the Nasdaq earlier this month, and since then its stock price has risen 41%, boosting its market capitalization to $9 billion. It has now become clear that one successful flotation is enough to restore color and optimism to the technology’s primary market, both globally and in Israel.

A new survey by Poalim Tech and research firm Meidata reinforces expectations that 2025 will be a year of transformation. The survey, conducted among dozens of leading venture capital investors and investment banks, found that at least five Israeli companies are expected to conduct initial public offerings in the next year. “ServiceTitan’s success has been phenomenal, especially considering that it was in the software services space and not in the tech-heavy space,” says Raz Mangel, partner at Greenfield Partners. He says the fact that the company was listed at a higher price than its target price “suggests a return to investor confidence.”

And this is not the only impressive success in the global IPO market over the past year. In March, media platform Reddit (NYSE: RDDT) went public, and since then its value has risen 253%, reaching a market capitalization of $30 billion. Semiconductor company Astera Labs (Nasdaq: ALAB), one of whose founders is Israeli businessman Avigdor Wellens, has risen 150% to a market cap of $20 billion since its initial public offering, also in March. “This year we have seen about 35 large tech IPOs,” says Uriel Levy, managing partner at ANEK Capital, a hedge fund that specializes in small and mid-sized technology companies. In software alone there have been 15 IPOs.

Massive flotations are scheduled for 2025 for companies such as fintech giant Stripe. In Europe, too, there is a clear recovery. Swedish fintech startup Klarna has announced its intention to hold an IPO next year, and digital bank Revolut is considering an IPO as it enters the US market.

The normal course of the stock market

Market sources say that Israeli technology companies usually reach the flotation stage after an average of six fundraising rounds, sometimes over a decade. Last year, several Israeli companies were identified as prime candidates to go public in the near future, among them Big dataa $9.1 billion developer of advanced data storage solutions; partWhich provides global payroll management solutions; And a financial technology company quicklywhich is expected to conduct an initial public offering worth at least $10 billion. Litrixknown for its photo and video editing application, and Security transfera developer of information security and identity verification solutions, is also on the list.

Trading platform eToroIt hired the services of investment bank Goldman Sachs to lead the IPO in the US. The company is expected to go public at a valuation of $5 billion. During the primary market boom, eToro took steps toward listing through a SPAC merger at a valuation of $10.4 billion, later revised to $8.8 billion. Ultimately, this step was cancelled.

Cybersecurity company Cato Networks He appointed a banking team consisting of Barclays, JP Morgan, and Goldman Sachs for an initial public offering in New York. Navan (formerly known as TripActions), developer of a platform for managing business travel and expenses, is expected to have an IPO valued at between $8 billion and $10 billion. Express delivery company GobovThe company, founded by American-Israeli businessmen, plans an initial public offering worth between $10 and $15 billion.

Companies planning IPOs in the long term are lindbazwhich provides financing for vehicle purchases, and which is considering going public in late 2025 or early 2026, and viaa developer of software systems for transportation services, which is considering an IPO at the end of 2025, valued at $2 billion.

Published by Globes, Israel Business News – en.globes.co.il – on December 26, 2024.

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